67 N.Y.S. 509 | N.Y. Sup. Ct. | 1900
Formerly a life insurance policy became forfeited in accordance with its terms by a failure to pay the premium on the day it came due. A statute was passed prohibiting any life insurance company from forfeiting a policy unless a notice giving the amount of the premium, when it would be due and where it could be paid were mailed to the insured by the company at his last known post office address not less than 30 nor more than 60 days before it became due (ch. 341, Laws 1876). This was amended to the effect that such notice should be mailed to the insured, “ or the assignee of the policy, if notice of the assignment has been given to the company”; and also requiring the notice to state that upon nonpayment the policy would be forfeited (ch. 321, Laws 1877). This was substantially incorporated in section 92 of the Insurance Law passed in 1892; and in 1897 (ch. 218) this section was so amended
In this case a notice in conformity with the statute was given to the insured. But the plaintiff contends that that was insufficient; that notice should have been given to him as assignee of the policy. The statute is that the policy shall not be forfeited within a year after non-payment unless the prescribed notice shall have been mailed “ to the person whose life is insured, or the assignee of the policy, if notice of the assignment has been given to the corporation”. The first statute on the subject prescribed a notice to the insured only, as we have seen. What is the meaning of this addition, by amendment, “or the assignee of the policy” ? Its object could only have been to protect the assignee. Still the statute is literally in the disjunctive or alternative, that there shall be no forfeiture within a year unless the notice be mailed “ to the person whose life is insured, or the assignee of the policy, if notice of the assignment has been given to the corporation ”. Does this require the notice to be given to both? ETo. Then does it give the company the option to give it to either? If so, there was no object in enacting the amendment. It plainly was not for the sake of the insurance companies that it was enacted; it could be of no use to them to have the requirement to notify the insured changed to a requirement to notify at their option the insured “ or ” the assignee of the policy. Tire statute must according to an established rule of construction be construed with a view to its object, i. e., to require
The condition in the unpaid note given for part of the premium that the policy should “ without notice to any party or parties interested therein be null and void on the failure to pay this note on maturity ”, was ineffective. It has to be coupled with the like condition in the policy itself, that the policy shall be múl and void on failure to pay any premium or note given therefor on the day it comes due, and can be given no greater force. The statute limits the operation of such agreements of forfeiture so that they can only take effect after the prescribed notice of forfeiture. It is prohibitive and -cannot be evaded (Equitable Life Assur. Society v. Clements, 140 U. S. 226).
Judgment for the plaintiff.